The fourth and final round of the Transformational Mixed Use Development tax credits is now available and could help realize large building projects in Ohio’s largest cities or their nearest suburbs (Google). CLICK IMAGES TO ENLARGE THEM.
Unless renewed, TMUD program enters final round
Developers looking to transform their Ohio communities can now apply for funding opportunities through the Ohio Department of Development’s Transformational Mixed-Use Development (TMUD) program that awards up to $100 million in tax credits per round.
However, unless the TMUD program is renewed by the Ohio General Assembly, this will be the fourth and final offering of the so-called “megaprojects” tax credits. For big-city applicants, the TMUD program funds new construction or renovations valued at $50 million or more and includes buildings that measure at least 350,000 square feet in connected parcels or has at least one building that’s at least 15 stories or taller. It also allows applicants to include buildings that are already under construction or renovation.
Online applications for the program are now available. The program provides a tax credit for major, mixed-use developments, encouraging construction and building improvements in underdeveloped neighborhoods across the state.
“The Transformational Mixed-Use Development program is helping to make our communities more interconnected, productive, and sustainable,” said Lydia Mihalik, director of the Ohio Department of Development in a written statement.
“Mixed-use developments create jobs, housing opportunities, and communities where Ohioans can thrive in places that have been historically underfunded and underdeveloped,” Mihalik said.
The tax credit can be used to help finance new construction and/or improvement of vacant buildings. Developments must influence the economic and social well-being of the immediate site and surrounding area in a way that will impact long-term change in the area. Development properties eligible for the tax credit must include at least two mixed uses, or three if one is a parking structure.
The Transformational Mixed-Use Development tax credit program was originally created to help new developers afford costly new-construction towers in or near Downtown Cleveland but none has been awarded. Only one new-construction project, Bridgeworks in Ohio City, has applied (Cleveland Water).
Eligible costs include land acquisition, building acquisition, demolition, site improvement, and new construction of the site.
Developments applying for the program will be divided into two funding categories: major city and general. Major city projects must be located within 10 miles of the corporation limit of Columbus, Cleveland, Cincinnati, Toledo, Akron, and Dayton. No more than $80 million per fiscal year will be approved for major city projects and no more than $40 million will be approved for a single development.
Through three prior rounds of funding, the program has awarded $300 million to 40 mixed-use developments in 24 communities that are expected to result in nearly $3.8 billion in new payroll and $6.3 billion in investments across Ohio.
For more information and to view available application documents, visit the program website. Applications will be accepted through 4 p.m. Oct. 4. Questions regarding the program can be sent to transformational@development.ohio.gov.
The Ohio Department of Development empowers communities to succeed by investing in Ohio’s people, places, and businesses. Learn more about our work at development.ohio.gov.
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